John Hancock Preferred Income Fund III

Frequently Asked Questions About HPS

What does HPS invest in?

The John Hancock Preferred Income Fund III (HPS) functions as a closed-end investment vehicle, primarily focused on fixed-income securities. Its overall management falls under John Hancock Investment Management LLC, with additional co-management provided by John Hancock Asset Management. The fund strategically allocates capital within the United States' fixed-income markets, aiming to acquire debt instruments from companies operating across a diverse array of sectors. A significant portion of its portfolio is dedicated to preferred securities and other fixed-income instruments that possess an investment-grade credit rating or higher from either Moody's or Standard & Poor's. To assess its performance, the fund measures itself against both the Bank of America Merrill Lynch Hybrid Preferred Securities Index and the Barclays U.S. Aggregate Bond Index. This U.S.-domiciled fund was originally established on June 19, 2003.

What is the expense ratio of HPS?

John Hancock Preferred Income Fund III (HPS) charges an expense ratio of 4.47%. This is the annual fee deducted from fund assets to cover management and operations.

What is HPS's dividend yield?

HPS's trailing-twelve-month yield is 9.88%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of HPS?

Effective duration measures HPS's sensitivity to interest-rate changes — a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. HPS's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of HPS?

HPS's credit quality breakdown — the share of holdings rated AAA through CCC and below — is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of HPS?

Yield to maturity (YTM) is the total return you'd earn from HPS if every bond in the portfolio is held to maturity at the current price. HPS's YTM is published on the fund's factsheet on the issuer's website — it differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.